Are you not seeing the results you need from your marketing campaigns? You’re not alone. Many businesses fail to move the needle when it comes to sales, but that’s probably because their focus is wrong. Most companies seek to expand their customer base and market heavily to new customers.
The problem? That’s not going to lead to sales success.
The likelihood of selling to new customers is between 5% and 20%. However, the possibility that you can sell to an existing customer is between 60% and 70%, according to SEMrush.
So, why do so many businesses focus on acquiring new customers instead of marketing to their existing customer base? For some, it’s simply a question of mindset. They’re focused on the false idea that unlimited growth is possible. For most businesses, it comes down to unsuccessful customer retention strategies that lead to dismal loyalty.
There is a solution, though. An automated customer retention platform can deliver critical capabilities and bolster your retention strategy.
What is Automated Customer Retention?
In a nutshell, automated customer retention is the use of advanced software to empower customer analytics and marketing activities. A customer retention platform helps ensure that you’re able to follow up with the people who matter most – those who’ve already made a purchase and proven that they’re interested in what you have to offer.
Why Does Customer Retention Matter?
With a better understanding of automated customer retention, let’s turn our attention to another question. Why does retention matter? Isn’t it better to focus on new customer acquisition primarily?
The issue is that this hinges on the fallacy of unlimited growth. No company has an unlimited potential audience size. Eventually, you will have reached as many people as you can. If you haven’t spent enough time nurturing the relationships with current customers, you’ll find that they lack loyalty to your brand and will defect for several reasons.
Here are a few additional eye-opening statistics that prove why customer retention is so necessary:
- Existing customers are 50% more likely to try your new products or services than new customers.
- Existing customers are 31% more likely to spend on each average order than new customers.
- Loyal customers spend 67% more within their third year with a company than in the first six months of a relationship.
Customer loyalty is very much essential. But, the point of discussion here is how does an automated customer retention platform work to enhance it? Let’s take a quick look on it.
Role of Automated Customer Retention Platform to Enhance Customer Loyalty
Here’s the thing. When businesses focus on acquiring new customers, they let existing relationships lapse. They may no longer receive promotional offers. New campaigns geared toward customers never see the light of day.
All that leads to a lack of engagement, and customers feel overlooked or ignored. The secret to a successful retention automation platform is its ability to maintain that connection with customers who have proven that they are willing to engage with you and pay for your products or services.
1. Streamlined Automated Follow-ups
FlowUp, as an Automated Customer Retention platform, offers streamlined follow-up automation that lets you keep the conversation with customers going. That includes a combination of leading-edge technologies, like always-on auto responders, multichannel communication capabilities that include SMS and voice, and much more.
2. Customized Workflow Management
One way that FlowUp shines when it comes to retention automation is in the ability to build custom workflows that support customer engagement through their preferred channels. Does one customer segment love to communicate via email, while another prefers to engage through social media?
FlowUp makes both possible and straightforward to accomplish with no hoops to jump through.
3. Wider Reach with Voice and SMS
FlowUp also helps you engage with existing customers and build loyalty by making them feel valued and heard. Get their opinion by sending tele-surveys or keep them engaged through pre-programmed SMS messages based on specific triggers.
Customized Lead Segmentation
A successful automated customer retention platform will also allow you to segment your audience. After all, there’s no point in sending the same communications to your entire customer base. With FlowUp, you benefit from the ability to create advanced segments based on triggers that occur during the customer journey and actual communications, as well as by location, time zone, demographic filters, and more. You can also track opt-outs and lost customers to manage your efforts better.
How to Build Loyalty in Your Customers?
While ongoing communication with a tool like FlowUp will undoubtedly keep your audience engaged, how do you build loyalty?
Keeping them in the conversation helps, but there are many other steps you can take or send them some driving forces during retention conversations that keep them in.
Special Offers – You can use your customer retention platform to send special offers customized to each person’s unique journey and experience.
Loyalty Program – Offer your customers access to a loyalty program with exclusive perks that offer value and utility. What bonuses might they offer?
Ask for Their Feedback – Ultimately, your customers want to feel valued. Asking them for their feedback (and then acting on that feedback) shows what they think about your brand matters.
Find Ways to Deliver a Better Customer Experience – Ultimately, customers are loyal to the brands that offer the best overall experience. It’s not just about the price, product quality, or other metrics. It’s the entire package. Take a long, hard look at your customer experience and adjust where necessary to stand out from the competition.
In Conclusion
Focusing solely on acquiring new customers is a huge mistake. Your current customers are far more valuable and have proven they’re willing and able to buy whatever you’re offering. Building loyalty through an automated customer retention platform like FlowUp allows you to boost profitability, enhance stability, and build a more robust overall organization while creating brand advocates.
Use the tips above to fine-tune your customer retention efforts and improve customer loyalty. To get more insights on the automated customer retention platform and its windfalls, connect with us today at help@flowup.com or schedule a demo with our experts now.